ING latest lender to hike variable home loan rates

Tom Watson

31 Jan 2019

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Online lender ING has become the latest bank to lift its variable home loan rates following an announcement earlier today.

The lender will raise rates across all of its variable rate home loan products by 15 basis points, effective as of February 7, 2019.

The out of cycle move comes just a week after major bank NAB finally succumbed to increased funding pressure by raising a number of its key variable rate home loan products by between 12 and 16 basis points.

RELATED: Last to fall: NAB hikes home loan rates, here’s how it stacks up to the other big banks

And according to Mozo Product Data Manager, Peter Marshall, today’s decision by ING to increase rates was likely influenced by similar factors.

“It’s a pretty big move and I think it’s a reflection of the bank bill swap rate remaining elevated. A lot of banks moved rates last year to cover increased funding costs and while the bank bill swap rate did fall back a bit towards the end of last year, it has since jumped again.”

“As a result of the latest jump I think it’s very likely that we’ll see even more lenders looking to increase variable rates in the near future - something I fully expect the RBA to consider when making their rates decision.”  

Is it time to make a move?

So just how hard will the latest rates hikes from ING hit their customers pockets?

Mozo calculated that an ING owner occupier customer paying principal and interest on a  $400,000 Orange Advantage Package home loan will pay an extra $411 in repayments each year as a result of the lift from 3.78% to 3.93%.  

“The simple fact is that ING customers will now be paying more on their mortgage repayments, so now is probably the time to be looking around to see if there are any better options out there,” said Marshall.

“ING often have good rates but they’re not the best in the market, so there are plenty of other lenders, particularly smaller ones, where borrowers can go to find themselves a better deal.”  

Top 5 variable rates in the Mozo database*

3.44% - Reduce Home Loans Rate Lovers Variable Home Loan

3.49% - Easy Street Standard Variable Home Loan

3.49% - Well Home Loans Well Balanced

3.54% - FreedomLend Variable Home Loan

3.54% - Homestar Variable Rate Loan

Looking for a more competitive home loan deal? Check out some of the hot offers below, or head over to the Mozo home loan comparison tables for more great deals.   

*Rates accurate as of 31/01/2019 an calculated on a $400,000 owner occupier principal and interest home loan with an LVR of 80%

Home loan offers 2019 - rates updated daily

  • Promoted

    ING

    2.49% p.a.

    2.52% p.a.

    $1234

    Product details Close details
    Mortgage Simplifier

    Enjoy no ongoing monthly or annual account-keeping fees. Unlimited additional repayments. Redraw facility available. If you choose to round up your Orange Everyday, every card purchase will help to directly reduce your outstanding home loan balance.

    • 2.49% p.a.

    • 2.52% p.a.

    • $299

    • $0.00

    • $250.00

    • yes - free

    • yes

    • no

    • 80.00%

    • $299

    • $150,000

    • $999,999

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Fortnightly, Monthly

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  • Promoted

    loans.com.au

    2.48% p.a.

    2.50% p.a.

    $1234

    Product details Close details
    Smart Home Loan 80

    A low-rate home loan that could save you thousands, with no ongoing fees plus unlimited extra repayments and free redraws. Mozo Experts Choice Low Cost Home Loan 2020.^ You'll need to be borrowing $1 million or less and have at least a 20% deposit required.

    • 2.48% p.a.

    • 2.50% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $520

    • $50,000

    • $1,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

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  • Promoted

    Suncorp

    2.68% p.a.

    2.69% p.a.

    $1234

    Product details Close details
    Back to Basics Special

    No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more. Get a $2,000 cash bonus when you refinance with an eligible Suncorp Bank Home Loan of $250k+. T&Cs & eligibility criteria apply.

    • 2.68% p.a.

    • 2.69% p.a.

    • $0

    • $0.00

    • $350.00

    • Yes - free

    • first redraw per month free

    • no

    • 80.00%

    • $0

    • $150,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    • Refinance from another lender to receive a $2,000 cash bonus for loans of at least $250,000 or $3,000 bonus for loans over $750,000. Available for loans with an LVR <90% and applications made by 18 December 2020 and settled by 26 March 2021.

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  • Promoted

    UBank

    2.49% p.a.

    2.49% p.a.

    $1234

    Product details Close details
    UHomeLoan - Discount Offer

    Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.

    • 2.49% p.a.

    • 2.49% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $0

    • $100,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the UHomeLoan - Discount Offer

  • Promoted

    homeloans.com.au

    2.54% p.a.

    2.55% p.a.

    $1234

    Product details Close details
    Low Rate Home Loan

    Get smart, flexible and cost-effective rates from homeloans.com.au. Complimentary 100% offset account and free online redraw. Unlimited additional repayments. Zero application or annual fees. Fast online application process.

    • 2.54% p.a.

    • 2.55% p.a.

    • $0

    • $0.00

    • $300.00

    • yes - free

    • yes - free

    • yes

    • 80.00%

    • $0

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Low Rate Home Loan

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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